As per the current market condition which are better small-cap and large-cap funds:

Large Cap Scheme
AUM(cr)
CAGR Return(%)
3Y5Y10Y
Axis Bluechip Fund(G)₹ 14,5229.68.610.7
Returns as on July 20, 2020
Small-Cap Scheme
AUM(cr)
CAGR Return(%)
3Y5Y10Y
Nippon India Small Cap Fund(G)₹ 7,898-2.96.9--
SBI Small Cap Fund(G)₹ 3,9173916.4
Returns as on July 20, 2020

We recommend Axis Bluechip Fund from the large-cap category, and Nippon India Small Cap Fund and SBI Small Cap Fund from the small-cap category. However, investment in SBI Small Cap Fund can be done only through the SIP route with maximum investment up to Rs 25,000 per month. Investors are advised to choose only one scheme from the suggested list of small caps. Equity or equity-based mutual funds are recommended only to those investors who have high-risk appetite and a long term view of at least 5 years.

In the case of small caps, this horizon should be at least 8-10 years for getting good risk-adjusted returns. It is also recommended that the potential investors go through a risk profiling exercise, define their realistic financial goals, and link each goal with the investment instruments before making any investments.